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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Definitions

EC 39B: Stud-founding bloodstock and related terms

You could also call this:

“Defining terms for special horses used in breeding and racing”

Stud-founding bloodstock is a special type of expensive horse that someone who wants to start breeding horses might buy. For it to be considered stud-founding bloodstock, you need to buy the horse before it’s 2 years old. Within 4 months of buying it, you have to tell the tax office that you plan to use the horse for breeding to make money. You also need to give them some information they ask for. The horse must be registered in special books that keep track of horses used for breeding.

High-priced bloodstock means a young horse that’s sold at a special sale when it’s about a year old. It needs to be sold for more than a certain price, which changes each year. People expect these horses to be able to have babies when they grow up.

A prospective bloodstock breeder is someone who buys a horse when they don’t already have a horse breeding business. They want to race the horse in New Zealand first, and then use it to breed more horses to make money.

A premier yearling sale is a special horse sale that’s on a list in schedule 18B.

The national minimum price threshold is the lowest price a horse needs to be sold for to be considered high-priced bloodstock. This price is set each year for different types of horses. You can find out what this price is in section EC 39C or section EZ 6B.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS178791.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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EC 39: First income year in breeding business, or

“Rules for valuing horses in the first year of a breeding business”

Next

EC 39C: Setting and publication of national minimum price threshold, or

“How the Commissioner sets and shares minimum prices for horse sales”

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 39BStud-founding bloodstock and related terms

  1. Stud-founding bloodstock means high-priced bloodstock that a prospective bloodstock breeder owns if—

  2. the prospective bloodstock breeder acquires the high-priced bloodstock before it is 2 years of age; and
    1. within 4 months after the day on which the prospective bloodstock breeder acquires the high-priced bloodstock—
      1. the prospective bloodstock breeder notifies the Commissioner of their intention to use the high-priced bloodstock for breeding bloodstock for profit; and
        1. information as the Commissioner requires is provided to the Commissioner; and
        2. the high-priced bloodstock is registered in the New Zealand Stud Book or in the New Zealand Harness Racing Stud Book.

          1. High-priced bloodstock means bloodstock that—

          2. is sold, when a yearling, at a premier yearling sale for an amount greater than the relevant national minimum price threshold for the calendar year in which the sale occurs; and
            1. is expected, when sold at the premier yearling sale, to be capable of being used for breeding when it reaches maturity.

              1. A prospective bloodstock breeder means a person who acquires bloodstock—

              2. when they do not have an existing bloodstock breeding business; and
                1. with the intention of—
                  1. having the bloodstock first raced in New Zealand; and
                    1. using the bloodstock for breeding bloodstock in New Zealand for profit.

                    2. A premier yearling sale means a sale of bloodstock yearlings that is listed in schedule 18B (Premier yearling sales).

                    3. National minimum price threshold, for a class of bloodstock and for a calendar year, means the national minimum price threshold set under section EC 39C or by section EZ 6B (National minimum price threshold for 2019 calendar year), as applicable, for bloodstock of the class for the calendar year.

                    Notes
                    • Section EC 39B: inserted (with effect on 1 January 2019), on , by section 159(1) (and see section 159(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section EC 39B(5): replaced, on , by section 160 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).